%0 Journal Article %A Oleg Solodar %A Michael J. Seiler %T Are HOLDRs a Piece of the Closed-End Fund Puzzle? %D 2001 %R 10.3905/joi.2001.319463 %J The Journal of Investing %P 65-71 %V 10 %N 2 %X The purpose of this study is to determine whether holding company depository receipts, or HOLDRs, a recently introduced financial product, carry a premium or discount to their net asset value. An examination of daily price time series reveals that like closed-end mutual funds, the HOLDR trades at an 8% discount to its NAV, and the discount is persistent over time. The discount is explained by market friction, inherent time risk, investor sentiment risk, and high volatility of the portfolio. %U https://joi.pm-research.com/content/iijinvest/10/2/65.full.pdf